News Release
$42 MILLION FOR FORAGEN TECHNOLOGIES LIMITED PARTNERSHIP
THE FIRST FUND OF ITS KIND IN NORTH AMERICA
SGF SOQUIA INC. INVESTS $14 MILLION
Saint-Hyacinthe, October 16, 2000. – Earlier today, a $42 million Pan-Canadian
investment fund devoted to the creation and start-up of advanced agricultural
technologies ventures in the Agri-food and Agri-biotechnology sector was announced.
Foragen Technologies Limited Partnership was launched by Royal Bank Ventures Inc.,
SGF Soquia Inc., and the Saskatchewan Opportunities Corporation and the Crown
Investments Corporation.
John T. Nilson, Minister of Crown Corporations for the Saskatchewan Governement, Jim
Rager, vice-chairman of Royal Bank Financial Group and Claude Blanchet, Chairman of
the Board and Chief Executive Officer of SGF, announced an investment of $42 million
for the creation of Foragen. The announcement came at the Bio Agro Contact 2000
conference, in the presence of Bernard Landry, Québec’s Deputy Prime Minister and
Minister of State for the Economy and Finance.
Foragen’s mandate is to promote venture creation by offering seed capital, technology
management advice and networking opportunities that will allow entrepreneurs to
concentrate on developing their technologies. Foragen is owned equally by Royal Bank
Ventures Inc. (RB Ventures), the Saskatchewan Opportunities Corporation (SOCO) and
the Crown Investments Corporation of Saskatchewan (CIC), and SGF Soquia Inc. Each
partner has committed to invest up to $14 million. Foragen has offices in Québec,
Ontario and Saskatchewan.
“Information and technology businesses are an important component of our future
development capital,” said Mr. Landry. “SGF Soquia’s involvement in Foragen will allow
Québec to increase its competitiveness and have access to a pool of business
opportunities in the food biotechnology field.” Mr. Landry also praised the partnership
with Ontario and Saskatchewan. These provinces are amongst the most important
leading-edge technology growth centres in Canada’s biofood sector.
“Saskatchewan is one of the leading players in the agriculture biotechnology sector in
Canada with more than one-third of all biotech companies located in Saskatoon,” said
Crown Corporations Minister John Nilson. “Our investment in Foragen will help us to
strengthen this position even further.”
“As the founding creator a year and a half ago, we are very pleased to have two partners
so committed to Agri-Science joining Royal Bank in launching Foragen Technologies
today. Our combined commitment will help keep Canadian Agri-Sciences innovations
and intellectual property in Canada”, said Jim Rager. “Foragen will seek out research in
Canadian lab benches and build sustainable, global Agri-Science companies. As far as
we know, Foragen is the first of its kind in North America, and possibly the world.”
Noting that the annual market growth rate for advanced technology derivatives in the
biofood sector (biopesticides, animal health, functional foods and genomic development)
varies between 10% and 24%, Mr. Blanchet said, “By investing in Foragen, SGF Soquia
has obtained a powerful analysis and intervention tool capable of meeting the premarketing needs of leading-edge technology companies in the biofood sector. Our
decision to invest in Foragen was based on the fact that it will enrich SGF Soquia’s
business opportunity pipeline and extend the potential market for its applications.”
Royal Bank Ventures Inc. is one of Canada’s leading science and technology
commercialization firms focussed on select high, growth, emerging sectors. RB
Ventures Inc. is a subsidiary of Royal Bank of Canada (RY) a diversified global financial
services group and a leading provider of personal and commercial banking, investment
and trust services, insurance, corporate and investment banking, on-line banking and
transaction-based services including custody. The group's main business units include
Royal Bank, RBC Dominion Securities, Royal Investment Services, RBC Insurance and
Global Integrated Solutions. The group has 49,000 employees who serve 10 million
personal, business and public sector customers in 30 countries. For more information,
visit Royal Bank’s Web site at www.royalbank.com.
The Saskatchewan Opportunities Corporation (SOCO) is an economic development
agency whose mandate is to facilitate Saskatchewan’s economic growth by investing in
businesses that will support and enhance industrial development. It seeks out business
opportunities in the agriculture, forest products, tourism and culture, mines and minerals,
energy and advanced technology sectors.
The Crown Investments Corporation of Saskatchewan (CIC) is a financial holding of the
Saskatchewan government. Its mission is to establish economic development strategies
for State-owned corporations, manage their portfolios and contribute to Saskatchewan’s
economic and industrial growth.
SGF Soquia Inc. is a subsidiary of the Société générale de financement du Québec,
known by its acronym SGF. The SGF’s mission is to carry out economic development
projects, in cooperation with partners and based on normal conditions of profitability.
Since it was restructured in 1998, it has generated investments of some $2 billion,
creating more than 9,000 direct and indirect operational phase jobs in addition to many
thousands of construction phase jobs. On December 31, 1999, the SGF’s consolidated
assets amounted to nearly $2 billion. The SGF has 40 international partners with
activities in Québec.
-30Sources : Mr Jean-Yves Duthel
Ms Judy Dobbs
Vice-president
Manager
Communications and Public Relations
Strategic Communications
SGF
Royal Bank Ventures inc.
(514) 876-9290
(416) 974-1755
Mr Hubert Bolduc
Press attaché
Cabinet of Minister Landry
(418) 643-5270
(514) 499-2551
Mr Ted Boyle
Director of Communications
CIC
(306) 787-9039